Paying for College

Withdrawals and Refunds

Federal regulations require the use of the Return of Title IV Funds Policy to be used for all students receiving any type of federal aid when calculating the aid a student can retain after withdrawing. This policy relates to Federal Pell, SEOG, and TEACH Grants, as well as Federal Perkins, Direct, and Direct PLUS Loans.

These regulations govern the return of aid disbursed for a student who completely withdraws from a term or payment period. The percentage of time that the student remained enrolled determines the percentage of disbursable aid for that period that the student earned. During the first 60% of the period/semester, a student “earns” aid in direct proportion to the length of time he or she remains enrolled. Should the student withdrawal, the student is required to return the respective percentage of aid to the University. A student who remains enrolled beyond the 60% point earns all aid for the period and no reimbursement is required.

Return of Title IV Federal Student Aid

The account of the student who has federal aid and withdraws before 61% of the semester has elapsed will be evaluated according to the U.S. Department of Education guidelines and formula.

The policy conforms to the Higher Education Amendments of 1998. Title IV programs affected by this provision are Subsidized and Unsubsidized Federal Direct Loans, Federal Perkins Loans, Federal Direct PLUS Loans, Federal Pell Grants, Federal SEOG Grants, and Federal TEACH Grants.

Federal aid is earned by the percentage of the payment period the student completes. The Office of Financial Aid calculates the percentage of aid earned by dividing the calendar days completed in the semester by total days in the semester. Weekends are included, but scheduled breaks that are at least five days in length are excluded. If the student completes more than 60% of the semester, 100% of the aid is earned for the semester. If the student completes 60% or less of the semester, the portion of federal aid determined to be unearned must be repaid by the University to the federal aid programs and the student is billed for the amount.

Institutional refunds and the formula used to determine the required return of federal and other student aid will be finalized within 30 days of the withdrawal date.

For students receiving federal aid, the refund must first be repaid to the Title IV programs, state grants, and institutional funds in accordance with existing regulations in effect on the date of withdrawal and with respect to various types of aid. It is possible that the student who withdraws will still have an outstanding balance due to the University.

Withdrawal Date

The withdrawal date is determined as follows:

• Official Withdrawals – the latter date of when the student began the institution’s official withdrawal process OR officially notified the institution of intent to withdraw
• Unofficial Withdrawals – the last date the student participated in an academic activity
• If the student has to leave without notification because of circumstances beyond the student’s control, the institution may determine a withdrawal date in its sole discretion related to those circumstances. The institution always has the option to use the student’s last day of attendance at a documented academically-related activity.

The percentage of the period that the student remained enrolled is calculated based on the number of days the student was enrolled. The number of days enrolled are divided by the total days in the enrollment period. Calendar days are used including weekends, but breaks of at least five days are excluded from both the numerator and the denominator.

Distribution of Unearned Aid

If a student has not earned all of the federal aid received to date at the point of withdrawal, funds will be repaid by the university in the following order: Federal Direct Unsubsidized Stafford Loan, Federal Direct Subsidized Stafford Loan, Federal Direct PLUS Loan, Federal Pell Grant, Federal SEOG Grant, Federal TEACH Grant, state grant and scholarship funds, institutional aid, outside scholarships. Unearned aid must be returned as soon as possible but no longer than 45 days after determining the student has withdrawn. Students are then required to repay the funds to the university.

Overpayment

In the event a student has received funds for living expenses and an overpayment of federal grant funds occurs, Baker University will notify the student of the overpayment. It is the student’s responsibility to return the overpayment to the proper federal grant program. Students who fail to repay overpayments will not be eligible for additional financial aid funds at any institution until the overpayment has been satisfied.

Post-Withdrawal Disbursement

A student that is determined to have received less Title IV aid than earned will be offered a post-withdrawal disbursement for the amount of earned aid that was not received. Any post-withdrawal disbursement made must meet required conditions for late disbursement.

Disbursement of Title IV Grant Funds

Post-withdrawal grant disbursements will be credited to a student’s account for outstanding allowable current semester charges or refunded to the student if their balance is zero. The school is permitted to credit any Title IV grant funds to the student’s account without the student’s permission. The school will post any credit applying to current charges to the student’s account. If the student has no current allowable charges, the disbursement must be made no later than 45 days of the school’s determination the student withdrew.

Disbursement of Title IV Loan Funds

Post-withdrawal loan disbursements will be credited to a student’s account for outstanding allowable current semester charges or paid directly to the student or parent for a Direct Parent PLUS Loan. Prior to making any disbursement, the student/parent must be notified in writing within 30 days of the school’s determination the student withdrew. The letter must identify the type and amount of the funds. If loan funds are available, the school must explain the student/parent has the option to accept/decline all or part of the loan. The letter must also inform the student/parent a response must be received within 14 days of the date of notice. If the school does not receive a response, no further disbursement is made. If the request is denied due to a late response, the school will send the student/parent notification.

Credit Balance Due to Return of Funds Calculation

The school must determine the correct Title IV credit balance, considering the results from both the Return to Title IV calculation and the institutional refund calculation. If after the Return to Title IV funds and the institutional refund calculations are applied to the student’s account and a credit balance results, the credit balance will be disbursed as soon as possible but no later than 14 days after the date of the Return to Title IV calculation is performed.

Eligibility for Institutional Aid

Entering freshmen must be determined eligible for admission to the CAS or SOE. Transfer or current students making initial application for aid must present a minimum cumulative 2.00 grade point average for the preceding semester(s) of full-time college work to qualify for any institutional aid. Specific required grade point averages are shown in current financial aid brochures or available from the Office of Financial Aid for each grant and scholarship, for initial awards, and for renewal of awards.

To qualify for Baker University institutional aid, recipients must be full-time students enrolled in a minimum of 12 credit hours per semester. Students have a maximum of nine semesters of eligibility for institutional aid.

Statement of Educational Purpose/Registration Status

To receive federal financial aid, students must sign a statement indicating that the federal funds will be used for education-related expenses, they have registered with the Selective Service or are not required to register, do not owe repayment on Title IV grants, are not in default, and have not borrowed in excess of loan limits.

Financial Aid Satisfactory Academic Progress (SAP)

The Department of Education requires colleges to monitor a student’s progress toward completing the degree to ensure that only students demonstrating steady progress toward completion of their academic program continue to receive financial aid.

Academic program requirements differ slightly depending on the type of assistance (Federal, State, or Institutional).

Maintaining Eligibility for Federal Aid

This process is separate from the Academic Satisfactory Progress. Federal regulations require institutions to monitor both quantitative and qualitative progress towards a degree.

• Quantitative – student must be able to complete the degree program within 150% of the reported program length. In addition, the student must successfully complete at least 67% of attempted hours each semester.
  • All transfer hours accepted by Baker University are considered when reviewing attempted hours.
  • All hours attempted when the student did not receive financial aid count, including summer hours.
  • Undergraduate students who earn grades of F, W, I, P, NC, or AU will have the courses counted in attempted hours, but not in the number of hours completed.
  • Repeating a course counts as attempted hours each time the course is repeated.
• Qualitative – student must maintain a minimum cumulative GPA of 2.00 for their program.

Student’s academic progress will be reviewed by the Office of Financial Aid annually in May.

If the student is not maintaining SAP, the student loses Title IV eligibility and will be placed on Financial Aid Suspension. Students who are placed on Financial Aid Suspension will receive written confirmation from the Financial Aid Office of their status. Such students will be offered the opportunity to appeal to the Financial Aid Advisory Committee for reinstatement of Title IV aid.

• Appeals can be made in some circumstances, such as medical problems, illness, or death of a family member.
• Appeal must be in writing.
• Student must explain why he/she failed to make SAP and what has changed to allow the student to make SAP by the end of the next semester.
• Appeals will be reviewed by the Financial Aid Advisory Committee, and the student will be informed of the decision within one week. Decision notifications will be sent to the student’s Baker email.
• A student whose appeal is approved is placed on Financial Aid Probation. If the student is placed on Financial Aid Probation, the student can receive federal aid for an additional semester in order to meet satisfactory academic progress.
• If the student is not successful during the probation period, the student is placed back on Financial Aid Suspension at the end of this additional semester. The student can appeal the decision.

If the second appeal is approved, the student will have one more semester of Title IV eligibility. If the student is not successful in meeting SAP standards at that point, the student will no longer be eligible for Title IV aid of any kind, including federal grants and loans.

In order to regain Title IV eligibility, the student must meet minimum SAP standards. The student may appeal for reinstatement of financial aid eligibility after completing a semester and meeting minimum GPA standards. Such students might be filing two petitions, one to the Office of the Registrar and a separate one to Financial Aid. The two petitions will not be evaluated by the same committee. It is possible for a student to be on Financial Aid Suspension and still be allowed to enroll at the University at the student’s expense.

Maintaining Eligibility for State of Kansas Financial Aid

Students receiving any grant or scholarship aid must maintain full-time enrollment status of at least 12 credit hours per semester. A minimum cumulative GPA of 2.00 must be maintained.

Maintaining Eligibility for Institutionally Funded Financial Aid

Financial Aid Standing is based on hours earned only at Baker University.

Both cumulative GPA and hours earned affect eligibility to receive Baker-funded aid. Students must be enrolled in at least 12 hours per semester to receive the maximum amount of aid.

Students will be reviewed annually to determine if they remain in good Financial Aid Standing in order to receive institutional aids as outlined below:

All Grade Levels:

• Must earn at least 67% of the attempted hours.
• To remain eligible for all aid, at least a 2.00 cumulative GPA is required.
• To continue to receive institutional academic scholarships, the renewal GPA tied to that scholarship must be maintained.
• Summer sessions are considered a trailer to the academic year and are factored into academic progress.

Financial Aid Suspension and Probation

Students who do not successfully complete the required minimum percentage of credit hours for the academic year and/or do not have a cumulative GPA of at least 2.00 at the time grades are reviewed annually will be placed on Financial Aid Suspension. Students will be notified in writing and will have the opportunity to appeal this decision to the Financial Aid Advisory Committee.

The appeal must be in writing and must include an explanation as to:

• why the student failed to make financial aid progress
• what has changed that will allow the student to be successful the following semester

A student whose appeal is approved will be placed on Financial Aid Probation for one semester. After that semester, the student must be meeting the financial aid satisfactory academic progress in order to receive financial aid funds. If the student is not successful, the student will again be placed on Financial Aid Suspension and will not be eligible for any type of institutional financial aid. To regain eligibility, the student will need to successfully complete at least one semester without financial aid and meet financial aid satisfactory academic progress.

In compliance with federal law and to promote confidence in the operation of our office, Baker University and the Office of Financial Aid have adopted the following principles to provide guidance to officers, employees, and agents of the university relative to the administration of financial aid resources.

• The Office of Financial Aid prohibits all individuals who have responsibilities with regard to the administration of financial aid resources from soliciting or accepting any gift, gratuity, favor, discount, entertainment, hospitality, or other items of value from entities involved in making, holding, consolidating, or processing student loans.
• The Office of Financial Aid prohibits all individuals who have responsibilities with regard to the administration of financial aid resources from accepting any fee, payment or other financial benefit as compensation for any type of consulting or other service contract with a lender or on behalf of a lender relating to education loans.
• The Office of Financial aid will exercise care and due diligence in selecting lenders for a lender list (in the event that a list is created and utilized). The Office of Financial Aid will enter into no revenue-sharing agreement with any lender.
• The Office of Financial Aid will make available the criteria and process used to select lenders for a lender list (in the event that a lender list is utilized) and will disclose any business relationships with lenders.
• The Office of Financial Aid will process loans for all lenders of choice, and will advise students and parent borrowers that they have the right and ability to select a lender of their choice independent of any lender list developed and maintained by the Office of Financial Aid.
• The Office of Financial Aid will not assign a lender to a first-time borrower or delay certification of a loan because of a borrower’s choice of lender (or guarantor).
• The Office of Financial Aid will provide no funds for private loans, including opportunity pool loan (in exchange for a specified number of federal loans, specified federal loan volume, or a preferred lender arrangement for federal loans).
• In order to prevent a potential conflict of interest or the perception of a conflict of interest, the Office of Financial Aid requires all individuals with responsibilities with regard to the administration of financial aid resources to advise supervision about any request for service on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors prior to the acceptance of any such position.
• The Office of Financial Aid will provide comprehensive financial aid counseling for students, prospective students, families, and the community.
• The Office of Financial Aid will continuously strive to provide the highest quality service to its constituents and it will continuously evaluate its services to students and families. The Office of Financial Aid will also conduct regular reviews and audits to provide assurance as to compliance with this Code of Conduct.
• The Office of Financial Aid and Scholarships has adopted the NASFAA Statement of Ethical Principles.

The Free Application for Federal Student Aid (FAFSA) determines your financial aid eligibility, whether it be federal loans, federal or state grants, or institutional aid. You must complete the FAFSA every year.

FAFSA

Baker University’s priority deadline is March 15 each year. To be considered for certain Kansas state aid, students must complete the FAFSA by April 1 each year.

The Department of Education had decided that students who are younger than 24 are still considered dependents of their parents. In certain situations, a students may be considered independent. These include a student being married; having children they support financially; or being emancipated, a veteran, in active duty, an orphan, in legal guardianship, or considered homeless. All of these require documentation.

Independent or dependent student status is determined by the Department of Education. To be considered independent by age, the student must be 24 by January 1 of the FAFSA year, a veteran, a ward of the court or an orphan, married before the completion of the FAFSA, in graduate school, or supporting a child or dependent parent.

Baker automatically receives the information. The Office of Financial Aid reviews each application to determine the aid that the student is eligible to receive. This aid is listed on the student’s financial aid offer. The student then accepts or declines the aid on the aid offer or in their student portal. Once classes start, the Financial Aid Office disburses the aid so it can be applied to the bill in the Business Office.

Sometimes the Department of Education selects FAFSAs for a special review process to make sure the information entered onto the FAFSA by the parent and student is correct. Documents can be in the form of verification worksheets, tax documents, or anything else to verify conflicting information. There is no deadline for verification, but we cannot award you federal aid until it’s complete. If you wait too long, late fees could start accruing on your bill in the Business Office.

Circle A for accept or D for decline on your award offer, sign it, and return it to the Office of Financial Aid. You can also accept your aid online through the student portal under the My Financial Aid tab. Be sure to accept each line item individually. Clicking Select All has not worked correctly in the past.

• If you wish to accept the student loans offered to you and have not had student loans before, you must complete a master promissory note and the entrance counseling before we are allowed to release your federal loans to the Business Office.

Your accepted financial aid will be applied to your bill in the Business Office one week before classes start. Do not expect to see accepted aid show up on your account until then.

When you complete the FAFSA you are also applying for federal and institutional aid, which can be in the form of loans. The Department of Education sets limits on the amount of loans a student can take out each year. There are also lifetime limits. We award you your loan eligibility for the year on your financial aid offer. This is where you can accept or decline the loans offered to you. Students may be awarded subsidized or unsubsidized loans, based on FAFSA results. The federal government pays the interest for direct subsidized loans while the student is in college or while the loan is in deferment. Interest begins accruing for direct unsubsidized loans as soon as the loan is taken out. Students have the option to make interest payments to their loan servicer while they are still enrolled.

When you accept the loans on your financial aid offer, the Financial Aid Office processes these loans through the federal government. The federal government requires an origination fee, also known as a processing fee, to be able to process and send your funds to the school so they can be applied to your Business Office bill. The origination fee is currently 1.057%. Please keep in mind that the loan will be reduced by the origination fee before applying to your bill.

If you decide to accept a federal student loan on your financial aid offer, the federal government will require that you complete entrance counseling and sign a master promissory note. Entrance counseling explains how loans work and provides information about loans in general. A master promissory note (MPN) lets the federal government know that you understand that a loan must be paid back when you leave school. When completing the MPN you will also provide references in case your loan servicer has a hard time getting in contact with you. Both are required to be able to process your loans, but you will likely only have to complete them the first time you accept a loan, not every year.

If you accept all federal loan eligibility offered to you for four years as an undergraduate, you will have a maximum of $27,000 in federal student loans. This does not include Parent PLUS Loan denials or outside private credit loans if you choose to use them.

If students still have a balance due after all financial aid has been applied to their bill, they have the option to search for outside scholarships, have their parents apply for a Parent PLUS Loan, set up a payment plan through the Business Office, or apply for an outside private credit loan, which usually requires a credit-worthy cosigner.

Parents have the option to apply for a loan in their name called the Parent PLUS Loan. This requires a credit check and cannot be submitted until June 1 for the following school year. If a parent is denied based on the credit check, then students are eligible for an additional unsubsidized loan in their name.

You can apply for scholarships through our Outside Scholarship Newsletter that is created by the Financial Aid Office, you can speak with your high school counselor, work hard to potentially earn departmental awards as a junior, search for scholarships throughout your community, or do an online search for safe and reliable scholarship opportunities. Scholarships are out there, you just have to search for them.

When eligible, based on FAFSA results, students may be awarded grants, also referred to as free money. This is money that students do not have to pay back. Examples of grants include the Pell Grant, Kansas Comprehensive Grant (KCG), and Supplemental Educational Opportunity Grant (SEOG).

Work study is a campus student-work program. The FAFSA determines whether a student is eligible to work and how they are to be paid: federally or through Baker. Federal work indicated on the aid offer means the federal government is helping to pay the wage. If it says Baker work, the university is paying the full wage. Certain positions require that students be federally eligible. Students can only work a certain number of hours because the funds have to fit within a financial aid budget determined by the Financial Aid Office. Usually, 8 hours per week meets these guidelines. Students fill out a monthly timesheet and submit it to their supervisor for a final review, and then supervisors (not students) submit the timesheets to the Financial Aid Office. Students get paid once a month and earn $7.25 per hour. Before beginning work, students must visit with Human Resources to fill out payroll paperwork.

The LOI provides an athlete with their total Baker-funded award. It is inclusive of ALL Baker University aid. The only exception is academic competition awards, for which a student may be eligible. The scholarship amount, indicated on the LOI is derived from several funding sources that will be listed on the financial aid offer. These funding sources may include an academic scholarship, athletic participation award, FAFSA filing grant, housing grant, alumni legacy or alumni referral scholarship, or a talent-based award in a nonathletic area.

If students are enrolled in a minimum of 6 credit hours over the summer and were full time the spring before, they may be eligible for a partial portion of a Pell Grant. The FAFSA is required, and the amount is based on FAFSA eligibility. In addition, if a student has not used their full annual loan limits, they may be eligible for federal student loan funds.

The Business Office creates a student’s bill, which includes all charges for tuition, housing, meal plan, classroom fees, athletic charges, music tutoring, and so on. Questions about charges or refund checks should be referred to the Business Office. The Financial Aid Office helps students receive aid that can be applied to their bill. Questions regarding FAFSA, loans, scholarships, work study, and so on should be asked in the Financial Aid Office.

Financial aid is applied to a student’s bill in the Business Office once classes begin. When financial aid goes above and beyond what is due, which means all charges have been paid (e.g., tuition, class fees, housing, meal plan), students receive a refund check for the overage amount. These funds should be used for educational purposes.

The National Student Loan Data System (NSLDS) is a federal database that allows students to log in with their Student Aid ID (formerly FSA ID) (the same ID used when completing the FAFSA) to view their aid, update contact information, and determine who their loan servicer is.

Financial aid standing is based on hours earned only at Baker University. Both cumulative GPA and hours earned affect eligibility to receive Baker-funded, federal, and state aid. Students must be enrolled in 12 hours per semester to receive the maximum amount of aid. Students will be reviewed annually in May to determine whether they remain in good financial aid standing in order to receive institutional, federal, and state aid. Students must successfully complete 67% of hours attempted, be on track to complete their degree in 150% of the program length, and maintain a cumulative GPA of 2.0. Certain programs and scholarships may have additional requirements.

Students who do not successfully complete 67% of attempted hours, are not on track to complete their degree in 150% of the program length, and/or do not have a cumulative GPA of at least 2.0 at the time grades are reviewed each May will be placed on financial aid suspension. Students will be notified in writing and will have the opportunity to appeal this decision to the Financial Aid Advisory Committee.

Once a student graduates, withdraws, or drops below 6 credit hours, they will be exited. This means that the Financial Aid Office will create an exit packet that lists the loans they received while attending Baker and notify their lender that they are no longer enrolled at least half time. This exit packet will be sent to the student’s Baker email and the email address they provided on the FAFSA. It will require that they complete online exit counseling through the federal government. It will help them to identify who their loan servicer is. The student will send their loan payments to this loan servicer, which is decided by the Department of Education.

Most loans allow a six-month grace period after a student is no longer at least half time. Private loans vary, with some requiring payment during school and others waiting until after the student is less than half time. There are also deferment and forbearance plans that can delay repayment under certain circumstances, such as going back to school or becoming unemployed.

The Family Educational Rights and Privacy Act (FERPA) prohibits the release of any records without the written authorization of the student involved. That means when a parent or guardian calls, we cannot speak with them about billing, financial aid, grades, and so on unless a signed authorization is on file, completed by the student, allowing us to release the specified information. This authorization can be completed in the Registrar’s Office in Constant Hall.